Five stocks, including Tata Motors CV could enter the Nifty Next 50 in March; Check potential inflows

Tata Motors Commercial Vehicles, Tata Capital, ICICI Prudential Asset Management Company, Muthoot Finance and either HDFC AMC or Cummins India could be potential inclusions to the Nifty Next 50 or the Nifty Junior index when the semi-annual index rejig takes place in March, according to a Nuvama Alternative & Quantitative Research.

The note states that these five names could replace Info Edge (Naukri), Bajaj Housing Finance, JSW Energy, Havells India and either among ICICI Lombard General Insurance and Zydus Lifesciences.

Rejig of the NSE indices takes place twice a year in March and September, where stocks are included and excluded from indices based on the criteria that they need to meet to stay or be included in an index.

Nuvama Alternative further stated that the it does not expect any change to the Nifty 50 index this time around.

According to the note, a potential inclusion of Tata Commercial Vehicles in the Nifty Next 50 could result in potential inflows to the tune of $143 million, while HDFC AMC could see inflows of $81 million.

On the flip side, the exclusion of Bajaj Housing, Info Edge, Havells could result in outflows between $14 million to $80 million, as per the Nuvama note.

Nuvama Alternative expects LG Electronics India, Lenskart, Groww, Meesho, MCX, Laurus Labs to be included in the Nifty Midcap 100 index.

Shares of Tata Motors CV have received a slew of brokerage initiations in recent times, expecting the stock to touch levels of as high as ₹560 in light of the positive turnaround in the Commercial Vehicle Cycle.